S.B. No. 841 amends the Texas Property Code to clarify the beneficiaries of trust funds related to improvements on specific real property. The bill specifies that individuals such as artisans, laborers, mechanics, contractors, subcontractors, or materialmen, as well as their qualified assignees, are considered beneficiaries of any trust funds paid or received in connection with such improvements. This change replaces the previous language that did not explicitly include the assignees.

Additionally, the bill introduces a new section, 162.0031, which outlines the conditions under which a beneficiary's assignment of interest in unpaid trust funds can be enforced. Key requirements include that the assignment must be in writing, made after the assignee has compensated the beneficiary, and not be part of the construction contract. Furthermore, the assignee must be a beneficiary, trustee, or property owner related to the construction or repair project, and written notice of the assignment must be provided to the property owner and contractor within seven days of the assignment. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 162.003 (Property Code 162)
Senate Committee Report: Property Code 162.003 (Property Code 162)
Engrossed: Property Code 162.003 (Property Code 162)
House Committee Report: Property Code 162.003 (Property Code 162)
Enrolled: Property Code 162.003 (Property Code 162)